Largest ever cash increase to the minimum wage
Employers and employees need to be aware that changes to the National Living Wage and the National Minimum Wage have this week been accepted by the UK Government following recommendations by the Low Pay Commission.
National Living Wage Changes
The changes will come into force in April 2024 and from the 1st April 2024 there will be:
- a £1.02, or 9.8 percent, increase to the NLW for those aged 21 and over (from £10.42 to £11.44 per hour)
- a £1.11, or 14.8 percent, increase for those aged 18-20 (from £7.49 to £8.60 per hour)
- a £1.12, or 21.2 percent, increase for those aged 16-17 and apprentices (from £5.28 to £6.40 per hour).
National Living Wage Age
As well as being a significant increase, it is also the first time it will apply to those workers aged 21 or over.
The National Living Wage (NLW) is currently the statutory minimum wage for workers aged 23 and over, although this will fall to 21 and over from April 2024.
Different minimum wage rates will continue to apply to 18-20 year olds, 16-17 year olds and apprentices aged under 19 or in the first year of an apprenticeship.
This increase is essentially the largest cash increase ever to the minimum wage and the first time any significant increases over £1 have been introduced.
Welcoming the news, Partner and Employment Solicitor, Susan Mayall said:
“This is a step in the right direction for workers receiving the national living wage and will significantly increase the earnings of a worker on the National Living Wage aged 21 or above by just over £1 an hour from April and in times of economic uncertainty every £1 helps.”
“It essentially means that a worker in the 21+ age group and working 38 hours a week over a 52 week period would see their earnings increase by £2,015.52 a year.”
“Employees on the lowest incomes have felt the rising cost of living most sharply and this news ahead of Christmas gives them something to look forward to in the forthcoming year,” added Susan Mayall.
How can we help?Subscribe to our newsletter
Please note that the information and opinions contained in this article are not intended to be comprehensive, nor to provide legal advice. No responsibility for its accuracy or correctness is assumed by Pearson Solicitors and Financial Advisers Ltd or any of its members or employees. Professional legal advice should be obtained before taking, or refraining from taking, any action as a result of this article.